(Newswire.net — June 28, 2021) — A lot of homes change hands in any given place in the US. In 2020 alone, Americans purchased over 5.6 million existing homes.
For the house hunter, one school of thought is that you should get a bid in as quickly as possible once you find the right or close-to-right home. Otherwise, you risk losing the opportunity forever. A different school of thought is that you should put off real estate purchases until a housing market crashes.
Is waiting for a crash the best option for you? Keep reading and we’ll cover the big pro and big con of the “wait for a crash” approach.
Pro – You can Save a Lot of Money
The housing marketing 2021 is great for sellers. The average home price hovers around a little under $300,000, which is a better than 10 percent jump from 2020. With a strong housing market, you may not precisely overpay, but it’ll take a lot of work to make the property substantially more valuable.
When a crash rolls around, you can often get outstanding properties well below their actual value. People want out of homes they can’t afford and will sell them for enough to clear their mortgage.
When the market rebounds, you see a dramatic increase in your home’s value with little to no effort.
Con – A Housing Market Crash Won’t Come on a Schedule
Before a crash can happen, you need a market bubble in place. Even if everyone acknowledges that a bubble exists, it’s often difficult to predict when the crash will occur. The housing market forecast can only tell you so much.
It might take a couple of months, or it might take a couple of years before a market bubble finally collapses. While the current housing market boom looks a lot like a bubble, it’s driven more by demand for housing than by any sketchy banking practices. In fact, credit for real estate purchases is tougher to get than ever.
Consider Your Needs and Wants
If you’re wondering how to choose between buying now and waiting for a crash, consider your needs and wants. Ask yourself a few pointed questions, such as:
- Is this a long-term home for me?
- Is this a short-term or medium-term investment?
- Is this a purchase I’ll make for non-monetary reasons, such as starting a family?
Answering these questions will help you focus on what you actually need and want out of buying a house.
Choosing to Buy or Wait
Choosing between buying now or waiting for a housing market crash isn’t simply a financial calculation. Yes, waiting can save you a lot of money, but it also means waiting. Sometimes, it means waiting for years.
If you see the property purely as an investment, then waiting on a crash makes sense.
If you see the property as a long-term investment or as a step on the path of building a life for your family, then buying sooner often makes more sense.
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